Three selected home-grown companies Reliance New Energy, Ola Electric, and Rajesh Exports have signed a program agreement under Production Linked Incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage. As per the agreement, the companies will receive production-linked incentives under India’s Rs 18,100 crore program.
The Ministry of Heavy Industries said that a total of 10 companies with manufacturing capacity of 128 GigaWatt Hour GWh had raised bids under the PLI scheme of ACC battery storage. The manufacturing plant would have to be set up within a period of two years and the incentive will be disbursed thereafter over a period of five years on sale of batteries manufactured in India.
The government has approved the ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ scheme for achieving manufacturing capacity of 50 GWh of ACC. In line with its ambitious target of eliminating tailpipe emissions, the country has also introduced initiatives such as PLI scheme for automotive sector (Rs 25,938 crore) and Faster Adoption of Manufacturing of Electric Vehicles (FAME) (Rs 10,000 crore) besides the PLI scheme for ACC (Rs 18,100 crore).
Union Minister Mahendra Nath Pandey said, “This embarks a new chapter in India’s manufacturing industry as we set the vision for battery manufacturing and compete globally with other nations in this sunrise sector. This will be favorable to the EV ecosystem and energy storage market as it will support the demand for EVs and renewable and attract investment in this sector. Today big companies are investing in battery manufacturing in India. We should support them and make India a truly global manufacturing hub.”
Arun Goel, Secretary, Ministry of Heavy Industries said “MHI has successfully completed the signing of PLI ACC Program in a record time of 13 months to promote battery manufacturing in the country in the middle of the pandemic. Now it’s the time for private players to take the lead and become global champions and also make the country the global hub in the energy storage segment. My best wishes to them on the journey ahead.”
“ACC PLI scheme is expected to directly impact the saving to the nation on account of reduction in import of crude-oil to a significant extent and increase the share of renewable at the national grid level.”, the Ministry of Heavy Industries further added.